Geely Motor: Saudi Aramco plans to acquire a minority stake in Geely-Renault joint venture with cash investment

Thank you CTOnews.com netizen Mr. Aviation for the clue delivery! CTOnews.com March 2 news, Geely Automobile today noon on the Hong Kong Stock Exchange announced that Geely Holdings, Renault, Saudi Arabian Oil Company ("Saudi Aramco") and the company signed a letter of intent on March 2, Saudi Aramco intends to invest in cash to obtain a minority stake in the proposed joint venture company.

CTOnews.com understands from the Geely Automobile Announcement that detailed terms regarding the equity structure of the proposed joint venture will be further negotiated and determined by all parties.

Geely Automobile said Geely Holdings and the Company, on the one hand, and Renault, on the other, expect their respective shareholdings in the remaining equity interests in the proposed joint venture to be equal. As at the date of publication, no final binding agreement has been entered into between the parties. The Company will publish separate announcements on the above matters as and when necessary.

According to Reuters, the new joint venture aims to develop more efficient gasoline engines and hybrid power systems. The deal would make Saudi Aramco the first major oil producer to invest in an automotive business, as the rise of electric vehicles could reduce demand for traditional fuels.